September 16, 2022

JetBlue, Southwest Update Q3 Guidance

Both JetBlue and Southwest filed 8-K reports with the SEC this week, amending their Q3 guidance as the fiscal quarter passed the halfway point.

JetBlue expects a slightly better outlook than previously thought, adjusting its revenue per ASM compared to 2019 expectation to fall between down 0.5% to up 0.5%, better than its previous plan that it would fall between a 3% loss and a high-water mark of breaking even. It also expects to spend a little more on fuel, raising its estimated fuel per gallon expense from $3.68 to $3.86 – a nightmarish change for anyone who suffers from dyslexia.

Southwest still expects to turn a profit in Q3, with strong advanced bookings cushioning the blow of less business travel than expected. Operating revenue is expected to be up between 9% to 11%, compared to a previous expectation of 8% to 12%.

Alliances Make Strange Bedfellows

American Airlines and its lawyers asked a federal judge in Boston to compel Delta Air Lines President Glen Hauenstein and Senior VP for Network Planning Joe Esposito to testify in the DOJ’s case against AA and JetBlue over the antitrust legality of their Northeast Alliance.

American claims that the alliance has already created a more competitive environment in the northeast, while the DOJ claims the opposite. American wants to require the testimony of the Delta executives because it says Delta has “responded accordingly” to the more competitive environment created by the alliance.

AA and JetBlue attempted to depose Hauenstein earlier this year but were denied by a Magistrate Judge who ruled Hauenstein had no unique knowledge that couldn’t be obtained elsewhere, except on the subject of how delicious Biscoff cookies were — but unfortunately that topic wasn’t part of the deposition.

Schiphol Struggles Continue to Mount

Amsterdam’s Schiphol Airport is reducing the number of passengers it will allow through at least October 31. The news comes the day after airport CEO Dick Benschop resigned his position as the airport’s poor operational performance continues to get worse.

AMS-based KLM ripped the airport upon learning capacity would be cut another 18% through the end of next month, complaining about the decision and the short-notice afforded KLM and other carriers. The airport admitted its decision was “bad news for passengers and for airlines,” but is still moving forward with the cutbacks.

The airport previously planned to begin rolling back some of the daily capacity limits this month and into October, but this reversal will see limits on daily passengers continue for the foreseeable future. The airport is especially short on security and baggage handling staff.

54,000 locally departing passengers will be permitted – down from the 67,500 it previously expected to allow, with the figure growing to just 57,000 in October. By comparison, Atlanta’s Hartsfield-Jackson averages about 300,000 per day, and in 2019, Schiphol averaged almost 200,000 per day.

  • Air New Zealand is not merging with Virgin Australia, according to Air New Zealand.
  • Canada Jetlines wants Chevrolet, apple pie, and baseball.
  • Cathay Pacific expects more customers now that people can fly to Singapore again.
  • EVA will sell you a business class meal when you’re sitting in coach for $25.
  • Garuda Indonesia is getting rid of first class.
  • Gol misbehaved.
  • Nigeria Air might be closer to launching. Also, it might not.
  • South African has a new plan.

I accidentally drank an entire bottle of invisible ink last night.

Now I’m at the emergency room, waiting to be seen.